Page 42 - ASEAN-EU Dialogue 2018: Regional and Inter-Regional Economic Cooperation: Identifying Priorities for ASEAN and the EU

over the years in the range of 22-24%. The segment of commercial KI services has contributed
over half of the overall KTI value added in the range of 55-62%. Between HT and MHT, the
share of HT in value added has overtook MHT since 2012, and the margin is getting wider
since then.

Table 7.2: Malaysia’s KTI Industries Value Added and Share in GDP, 2008-2016

2008 2009 2010 2011 2012 2013 2014 2015 2016
Nominal GDP ($USD millions) 230,812 202,257 255,018 297,989 314,412 323,280 338,073 296,285 296,359
Value added of KTI:
- $USD (Millions) 51,643 47,404 59,460 66,961 73,384 77,138 79,830 71,168 71,615
- As % to GDP 22.4 23.4 23.3 22.5 23.3 23.9 23.6 24.0 24.2
Contribution by Sectors (%):
- Commercial KI 1 55.8 61.9 60.8 60.4 59.7 59.3 59.0 57.8 58.5
- HT manufacturing 19.7 14.9 15.4 16.4 17.4 19.3 19.7 19.2 19.1
2
3
- MHT manufacturing 19.0 17.2 18.0 17.3 17.1 15.5 15.3 16.5 15.8
Note: 1 Includes business, financial, communications, education, and health.
2 Includes aerospace, communications and semiconductors, computers and office machinery,
pharmaceuticals, and scientific instruments and measuring equipment.
3 Includes motor vehicles, electrical machinery and apparatus, chemicals excluding pharmaceuticals,

railroad and other transportation equipment, and machinery and equipment
Source: Data extracted from Science and Engineering Indicators 2018 (National Science Board, 2018)

Table 7.3 provides details of the trade activities in Malaysia’s KTI industries. HT products
have been dominating Malaysia’s KIT exports and this is followed by MHT products. Although
the export of commercial KI activities are the lowest among the three, the growth of export rate
at 48.0% is impressive. Similar patterns can be observed in terms of imports of the KTI
industries. In terms of trade balance, only HT products have shown a trade surplus during the
period of 2008-2016. Both commercial KI services and MHT products experienced an
extremely high trade deficit at 167.3% and 253.1% respectively.

Table 7.3: Trade in Malaysia’s KTI Industries, 2008-2016

2008 2009 2010 2011 2012 2013 2014 2015 2016 Growth (%) 1
Exports of:
- Commercial KI 6,082 5,979 7,517 9,708 11,451 11,829 10,587 8,940 9,001 48.0
- HT products 71,692 71,661 83,798 85,010 80,322 81,048 86,502 83,501 85,309 19.0
- MHT products 34,729 27,490 37,002 44,987 44,564 45,135 45,662 42,837 40,767 17.4

Imports of:
- Commercial KI 8,104 8,419 10,884 12,924 14,499 15,272 14,567 13,448 14,406 77.8
- HT products 44,710 39,311 54,638 52,135 52,978 54,770 55,726 51,355 54,529 22.0
- MHT products 36,956 30,657 42,149 47,650 52,641 52,616 51,876 47,817 48,631 31.6

Trade balance
- Commercial KI -2,022 -2,440 -3,367 -3,216 -3,048 -3,443 -3,980 -4,508 -5,405 (167.3)
- HT products 26,982 32,350 29,160 32,875 27,344 26,278 30,776 32,146 30,780 14.1
- MHT products -2,227 -3,167 -5,147 -2,663 -8,077 -7,481 -6,214 -4,980 -7,864 (253.1)
Note: 1 Figures in parentheses indicate percentage of growth in trade deficit.
Source: Data extracted from Science and Engineering Indicators 2018 (National Science Board, 2018)

Table 7.4 shows the share of Malaysia’s HT and MHI industries in manufacturing sector during
2008-2016. The overall shares of HT industries have slightly increased from 18.0 to 21.0%
while the share of MHI is quite stagnant at the range of 17%. Both HT and MHT are not the
main contributors to the manufacturing sector value added in Malaysia. Semiconductor
industries dominated more than half of the value added of HI; whereas the performance of the
computers and office machinery industries shows a downward trend. In the case of MHI

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